UK Contractor heading back to New Zealand and wants to continue: Advice required UK Contractor heading back to New Zealand and wants to continue: Advice required
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  1. #1

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    Default UK Contractor heading back to New Zealand and wants to continue: Advice required

    Hi, was just wondering if anyone has an experience in this area and could offer some advice ? I will try explain as best I can.

    1. I am currently contracting to a UK company and on a 2 year visa. My 2 year visa is coming to an end (I am a NZ Citizen and will have to go home at the end of the 2 year visa)

    2. I would like propose/ask my current UK company to continue the contract when I am in NZ through a ltd company I have set up in my home country (New Zealand). This means money will be paid into a foreign NZ account.

    3. Due to the nature of my work; I am able to work remotely from any location. I would like to travel and work at the same time under this same contract.

    To sum up; I am contracting for a UK company; money being paid to an NZ company but I will be physically located in lets say for example Asia, South America etc.

    My questions is; is there any legal, tax or other conciderations on why this might or might not work ? If there is anyone out there who can advice or help me or point in me in the right direction on who to talk to; I would be really appreciated.

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    Quote Originally Posted by nztravller View Post
    Hi, was just wondering if anyone has an experience in this area and could offer some advice ? I will try explain as best I can.

    1. I am currently contracting to a UK company and on a 2 year visa. My 2 year visa is coming to an end (I am a NZ Citizen and will have to go home at the end of the 2 year visa)

    2. I would like propose/ask my current UK company to continue the contract when I am in NZ through a ltd company I have set up in my home country (New Zealand). This means money will be paid into a foreign NZ account.

    3. Due to the nature of my work; I am able to work remotely from any location. I would like to travel and work at the same time under this same contract.

    To sum up; I am contracting for a UK company; money being paid to an NZ company but I will be physically located in lets say for example Asia, South America etc.

    My questions is; is there any legal, tax or other conciderations on why this might or might not work ? If there is anyone out there who can advice or help me or point in me in the right direction on who to talk to; I would be really appreciated.
    Well the obvious one is... your client may not be comfortable with this particularly given the time difference(s) of the places you may reside in?

  3. #3

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    There will be lots of tax implications, mainly in NZ and the countries you work thorough.

    HMRC won't care what you do
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by nztravller View Post
    Hi, was just wondering if anyone has an experience in this area and could offer some advice ? I will try explain as best I can.

    1. I am currently contracting to a UK company and on a 2 year visa. My 2 year visa is coming to an end (I am a NZ Citizen and will have to go home at the end of the 2 year visa)

    2. I would like propose/ask my current UK company to continue the contract when I am in NZ through a ltd company I have set up in my home country (New Zealand). This means money will be paid into a foreign NZ account.

    3. Due to the nature of my work; I am able to work remotely from any location. I would like to travel and work at the same time under this same contract.

    To sum up; I am contracting for a UK company; money being paid to an NZ company but I will be physically located in lets say for example Asia, South America etc.

    My questions is; is there any legal, tax or other conciderations on why this might or might not work ? If there is anyone out there who can advice or help me or point in me in the right direction on who to talk to; I would be really appreciated.
    Surely your first port of call should be your client? If they arent happy with such an arrangement, you're goosed.
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  5. #5

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    Quote Originally Posted by gnarledcontractor View Post
    Well the obvious one is... your client may not be comfortable with this particularly given the time difference(s) of the places you may reside in?
    I have a feeling this won't be a problem. We currently work with 3rd party suppliers all over the world. We generally do not have set business hours but rather deadlines we need to do things by i.e. particular date and time

    I am more worried about the tax implications; and how to deal with that i.e. not being in new zealand but receiving money from the UK. Does it mean I pay NZ tax but may also have to deal with potential tax laws in countries im travelling through etc.

  6. #6

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    so there is a double tax treaty between uk and nz.. a google search yielded this

    New Zealand operates a comprehensive taxation regime under which New Zealand Tax Residents are subject to income tax on their worldwide income – in the simplest terms, any money you earn is taxed. New Zealand has a Double Tax Agreement with the UK, so you should not be taxed twice on any UK income

    Sent from my SM-G960F using Contractor UK Forum mobile app

  7. #7

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    Quote Originally Posted by nztravller View Post
    Hi, was just wondering if anyone has an experience in this area and could offer some advice ? I will try explain as best I can.

    1. I am currently contracting to a UK company and on a 2 year visa. My 2 year visa is coming to an end (I am a NZ Citizen and will have to go home at the end of the 2 year visa)

    2. I would like propose/ask my current UK company to continue the contract when I am in NZ through a ltd company I have set up in my home country (New Zealand). This means money will be paid into a foreign NZ account.

    3. Due to the nature of my work; I am able to work remotely from any location. I would like to travel and work at the same time under this same contract.

    To sum up; I am contracting for a UK company; money being paid to an NZ company but I will be physically located in lets say for example Asia, South America etc.

    My questions is; is there any legal, tax or other conciderations on why this might or might not work ? If there is anyone out there who can advice or help me or point in me in the right direction on who to talk to; I would be really appreciated.
    Interesting.

    If this plan worked well, HMRC's dreams are busted... I am not aiming at this particularly to your case... but if this worked, most contractors and / agents / clientCos will bubble up with this idea / route.
    I am not sure HMRC would not have thought of this one... but who knows!

    Seek professional guidance before you embark on this though.

  8. #8

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    Quote Originally Posted by nztravller View Post
    To sum up; I am contracting for a UK company; money being paid to an NZ company but I will be physically located in lets say for example Asia, South America etc.

    My questions is; is there any legal, tax or other conciderations on why this might or might not work ? If there is anyone out there who can advice or help me or point in me in the right direction on who to talk to; I would be really appreciated.
    Where you are physically located, and for how long, is important. You may be caught by their rules on working and/or tax on foreign income. What will your residency for tax purposes be? Not really enough information to go on here.

  9. #9

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    Quote Originally Posted by CosmicWave View Post
    Interesting.

    If this plan worked well, HMRC's dreams are busted... I am not aiming at this particularly to your case... but if this worked, most contractors and / agents / clientCos will bubble up with this idea / route.
    I am not sure HMRC would not have thought of this one... but who knows!

    Seek professional guidance before you embark on this though.
    Good advice. There are people who successfully manage this scenario, being a citizen of one country, working from another country and with the client in a third. But it takes a specialist professional tax adviser to make sure you get it right.

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